Monthly Macroeconomic Review 2018 January

PBO’s Monthly Macroeconomic Review reflects the trends of major macroeconomic variables. The review is based on data from Geostat, National Bank of Georgia and Ministry of Finance.

In December 2017, real GDP growth amounted to 4.7% YoY. According to VAT turnover, this growth was predominantly driven by trade and manufacturing industry. In 2017, average growth of real GDP equaled 4.8%. As for inflation, in January 2018, annual inflation totaled 4.3%, while GDP deflator made up 5.9% in December 2017. With regard to external trade, in 2017, following economic recovery in major partner countries and increase in external demand, YoY increase was 29.1% in exports and 9.4% in imports. During this period, the share of exports in external trade turnover increased from 23% to 26%, while the trade balance deficit increased by 1.4% YoY. In December 2017, money transfers from abroad increased by 16.3% YoY. In January, official international reserves grew by 9.7% YoY and equaled USD 3,069 million.